Experts say the United States’ decision to impose additional tariffs on China could intensify export competition between Seoul and Beijing.

According to a report released Monday by the Korea Center for International Finance, China may increase production as a result of U.S. President Donald Trump’s recent tariffs.

Chinese companies could shift their exports to other countries, the report said, leading to fiercer competition with South Korea in the global export market.

The report also forecast that Trump’s tariffs could escalate trade conflicts between the U.S. and developed countries, and that China could witness increased trade tensions both with developed and emerging countries.

The center also said South Korea could see some indirect benefits, as the intensified trade conflict between the U.S. and China may make South Korean goods more competitive in export markets in both countries.